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Tradeoffs between forests and farming in the Legal Amazon Region of Brazil

Author

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  • Silva, Felipe
  • Perrin, Richard K.
  • Fulginiti, Lilyan E.

Abstract

Deforestation has been a topic of debate in climate change discussions due to its effect on CO2 emissions. The Amazon Forest, the biggest tropical forest in the world, is located along the north of Brazil. There, expansion of soy and corn production has pushed the production of livestock and other crops toward the Amazon forest, which involves a tradeoff between the area in forests versus these activities. We estimated the tradeoff between agriculture and forest for the 771 municipalities of the Amazon region by finding the production possibility frontier, using Data Envelopment Analysis. This tradeoff was estimated based on directional output distance functions. We found that, on average, 58% of observable total revenue from livestock, grains and timber production would be foregone to decrease deforestation in 2006 by 93%. We also estimated determinants of efficiency differences across states, which suggested that environmental efficiency was enhanced in municipalities with higher development indexes.

Suggested Citation

  • Silva, Felipe & Perrin, Richard K. & Fulginiti, Lilyan E., 2016. "Tradeoffs between forests and farming in the Legal Amazon Region of Brazil," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230040, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saea16:230040
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    References listed on IDEAS

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    1. Andrea Cattaneo, 2001. "Deforestation in the Brazilian Amazon: Comparing the Impacts of Macroeconomic Shocks, Land Tenure, and Technological Change," Land Economics, University of Wisconsin Press, vol. 77(2), pages 219-240.
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    6. Pascale COMBES MOTEL & Jean-Louis COMBES & Catherine ARAUJO BONJEAN & Claudio ARAUJO & Eustaquio J. REIS, 2010. "Does Land Tenure Insecurity Drive Deforestation in the Brazilian Amazon?," Working Papers 201013, CERDI.
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    More about this item

    Keywords

    Environmental Economics and Policy; Production Economics; Q51; Q54; C61;

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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